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Making High Quality Decisions

Participant Material

We are pleased to provide you with these electronic materials


for your personal use as one component of your DDI training
experience. You are welcome to keep them as a reference;
however, they are not to be forwarded or shared with any
other person or entity.

This file contains four separate documents which will be referred to in the training:

Pages 3-34 (Course Journal)

Pages 35-36 (Job Aid)

Pages 37-38(Decision-Making Planner)

Pages 39-88 (Resource Guide)

DO NOT PRINT THIS PAGE

EXLMHQDEPPKGV1-0
DO NOT PRINT THIS PAGE
MAKING
HIGH-QUALITY
DECISIONS
Making High-Quality Decisions Course Objectives
You will learn to:
† Recognize the impact of decision making on your team and organization and on your own
success.

† Apply a process and best practices for analyzing problems and opportunities and for making
high-quality decisions.

† Identify common decision-making pitfalls.


† Determine whom to involve in important decisions.
† Plan your approach to major analyses and decisions.

Applying these concepts/skills will enable you to:


† Make decisions more effectively and confidently.
† Avoid obstacles to objective analysis and judgments.
† Involve the right people at the right time.
† Gain the help and support needed to make high-quality decisions and to implement them.

Cover image © Last Resort/Digital Vision/Getty Images. Directional arrows on a road sign pointing to three
different directions represent the choices we face as leaders. To get to our ultimate destination—a quality
decision—we must carefully weigh the alternatives and use good judgment to choose the best route.

This course is part of DDI’s global Interaction Management® system for developing exceptional leaders and individual
®
contributors. It also is offered and sold under the trademarks Interaction Management : Exceptional Performers Series,
® ® SM SM
Interaction Management : Exceptional Leaders Series, IM: EX , IM: ExP , and IM: ExL .

© Development Dimensions International, Inc., MMXI. Revised MMXII. Pittsburgh, Pennsylvania. All rights reserved under U.S.,
International, and Universal Copyright Conventions. Published in the United States of America, the United Kingdom, Canada, Australia,
and other countries. Development Dimensions International, Inc., prohibits the reproduction of any portion of these materials in any
medium without prior written agreement. These materials may be used only with related printed and digital materials and digital media.
Furthermore, clients are required to provide each viewer of the video with a complete set of related printed or digital materials for that
person’s use during and after the training. Such materials are not intended for or authorized for use by others. DDI and marks designated
with ® are trademarks of Development Dimensions International, Inc., and are registered in the United States and several international
jurisdictions.
MAKING HIGH-QUALITY DECISIONS

The Decision-Making Process

Tips and Lessons Learned


Think about a tip or lesson learned that you use or keep in mind when making decisions, and jot it
down in the space below. This could be a particular step in the Decision-Making Process that
you find challenging or particularly important, or a best practice or tip that has helped you make
good decisions.

© Development Dimensions International, Inc., MMXI. Revised MMXII. 1


MAKING HIGH-QUALITY DECISIONS

Welcome to Sip-for-a-Spell

Background
Sip-for-a-Spell is a beverage shop in the heart of the downtown market district of a large city. It is
owned by Jamie, who is extremely invested in seeing the business succeed.

Sip-for-a-Spell is known as a place where you can enjoy the conversation as much as your
favorite nonalcoholic beverage. It offers:
x A wide selection of coffees, teas, juices, and soft drinks.
x Snacks, such as pretzels and chips.
x A limited line of prepackaged pastries and sandwiches.

Most of the business’s profits come from beverage sales.

You are one of Jamie’s two silent business partners. You and the other partner each own
20 percent of the shop and hope that Jamie’s business model can be expanded, either through
opening more shops in other locations or, more likely, through franchising.

While you are not involved in the day-to-day operations of Sip-for-a-Spell, Jamie relies on your
advice to run the business and especially needs your help and guidance right now.

© Development Dimensions International, Inc., MMXI. Revised MMXII. 2


MAKING HIGH-QUALITY DECISIONS

An Email from Jamie


TO: Silent Partners

FROM: Jamie

SUBJECT: Your advice needed

Thanks for taking the time to read this, and thanks in advance for giving me your best advice. I
think we have a real winning business model. Sip-for-a-Spell is a place where everyone who
comes to the market district—young, old, professionals, factory workers, families, and visitors to
the city—can relax and enjoy each other’s company over their favorite beverage.

I keep an eye on how we compare price-wise to nearby competitors, and our prices are very
similar to others’.

I know you want the business to succeed as much as I do, so here’s what’s been going on:
x We’ve had a drop in sales lately. I believe the problem is directly related to construction on
major streets that makes it very inconvenient for customers to drive to the market district.
That construction is ending this week, so I think we’ll see business pick up soon.
x I’ve heard some grumbling from customers who want us to provide free wireless Internet, so I
posted a sign a few weeks ago letting everyone know that we’ll have it up and running next
month. My plan is to focus a bigger share of our advertising budget on the new wireless
service.

I think I’m on the right track with this. Are you OK with what I want to do?

© Development Dimensions International, Inc., MMXI. Revised MMXII. 3


MAKING HIGH-QUALITY DECISIONS

GATHER Information

Organize Data Collection


Identify the information you need and where you can get it. Sources of information include:
x Experts.
x Suppliers.
x Customers.
x Those closest to a situation (e.g., frontline employees).
x Those who would implement the decision.
x Internal statistics (e.g., production, sales, and quality reports; customer complaints).
x Competitor information.

Tips and Techniques


Gather to understand, not to confirm. There’s a big difference between objective fact-finding
and collecting data to prove a point or confirm one’s thinking. The key is to delay judgment until
all the evidence has been collected and analyzed. Gather information from all relevant sources,
including information that might disprove your or others’ initial conclusions.

Pitfalls in This Step


x Being overconfident in your ability to interpret the cause of problems or to make any
solution work might lead you to shortcut or eliminate this step. This can result in
misdiagnosing the problem or opportunity and making a poor decision.
x Thinking subjectively can lead you to ignore external facts or gather only information that
confirms your feelings and opinions.

© Development Dimensions International, Inc., MMXI. Revised MMXII. 4


MAKING HIGH-QUALITY DECISIONS

Two Questions for You


x Is there anything you’d like to clarify about what Jamie has told you?

x What additional information would you like to have, and from what sources?

Notes
Use this space to take notes on what Jamie has to say.

© Development Dimensions International, Inc., MMXI. Revised MMXII. 5


MAKING HIGH-QUALITY DECISIONS

INTERPRET Information

Identify Trends, Associations, and Cause-Effect Relationships


Your goal in this step is to weigh the information objectively and look for links between distinct
pieces of data. Some links include:
x Comparisons—similarities and differences between your current situation and other
situations inside or outside the organization.
x Connections—ties between your current situation and distinct pieces of information and the
people involved.
x Changes—new occurrences or deviations from expectations.
x Trends—a general tendency toward improvement or deterioration.

In the Decision-Making Process, identifying trends, associations, and cause-effect relationships is


one of the most challenging and critical tasks. But by accurately analyzing the data, separating
issues, and remaining objective, you will be more focused later in the process and equipped to
use appropriate logic, leading to the right decision.

Tips and Techniques


Consider biases or blind spots. Everyone approaches situations with biases and
preconceptions based on personal experience, interests, or other factors. To minimize the impact
of these subjective factors, first examine personal influences that could cause you to discount
facts or skew your interpretation of data. One way to do this is to openly discuss your biases
and influences.

Pitfalls in This Step


x Going it alone. Failing to tap others’ thinking and perspectives in interpreting information
and reaching conclusions can lead to faulty analysis or a lack of support for conclusions.
x Thinking subjectively. This means relying on your feelings or opinions instead of external
facts or discounting or overemphasizing information that supports one’s conclusions. This
can erode others’ confidence in your conclusions and the eventual decision.

© Development Dimensions International, Inc., MMXI. Revised MMXII. 6


MAKING HIGH-QUALITY DECISIONS

Source: Suggestion Box at Sip-for-a-Spell


About three months ago, Jamie placed a suggestion box near the checkout counter in hopes of
getting some ideas for how to improve his business. Below is a summary of comments made by
customers who checked the “No” response, indicating they probably won’t return to Sip-for-a-
Spell anytime soon unless some changes are made. More than half of the suggestions seem to
have been made by college students.
x “We want wireless Internet now!”
x “This place is too old-fashioned. Need to get some couches and comfortable chairs in here
so we can have a place to study and work on laptops.”
x “It’s too loud in here, with people talking all the time. It reminds me of a bar.”
x Several people wrote comments such as, “Like the drinks, but more choices would be better.
Don’t like the layout—it needs more space, tables, and furniture.”

“I’ll be getting wireless Internet soon,” Jamie thinks to himself. “I could lease the vacant storefront
next door. Then I could open up that space to create a study or quiet area.”

Source: Loyal Sip-for-a-Spell Customers


One day, Jamie approached several loyal customers to get their feedback. Here’s what he
heard:
x “I come here all the time. It’s the place to go to get your morning started off right. And I really
like how you encourage people to chat with whoever is in the shop.”
x “The history you’ve collected on these walls is awesome. People could learn a thing or two
about our fine city just by grabbing a cup of coffee here.”
x “Do you think you might need to add a few more coffee flavors or maybe a flavor of the
month? You know how people like that sort of thing.”
x “I wouldn’t object to more food items, like freshly made deli sandwiches or even hot lunch
choices.”
x “How about a frequent reward card? That seems to be a great marketing incentive. Have
you thought of that?”
x “I don’t know. . . . I like it just the way it is. I wouldn’t change a thing about the place. We
like to talk and share a few laughs—even with strangers. I like the stools and small tabletops.
We don’t need a couch and televisions. We could stay home for that.”

© Development Dimensions International, Inc., MMXI. Revised MMXII. 7


MAKING HIGH-QUALITY DECISIONS

Source: Customers Who Opted for Fill-to-the-Brim


Over the past several weeks, more than a few people walked into Sip-for-a-Spell, but then walked
out and went two blocks up the street to the Fill-to-the-Brim beverage shop, which has been
around for about five years. Not sure what to make of this, Jamie sent his other business partner
to be a “mystery sipper” and investigate why. Here’s what Fill-to-the-Brim customers were
saying:
x “We come here for the protein shakes. They’re available in many flavors and are pretty good.
The place down the street [Sip-for-a-Spell] doesn’t offer protein shakes at all.”
x “A good cup of coffee or tea is great in the morning, but after a morning workout at the health
club, you really want something cold and healthy.”
x “Check out this lounge area. It’s so nice and plush. There are even some quiet nooks if
you’re a reader.”
x “This place is a bit closer for me than Sip-for-a-Spell, but I’d go back if they offered better
lunch choices.”
x “I started coming to Fill-to-the-Brim because they have been doing a lot of advertising lately,
including special promotions that are too good to pass up. I’ve been told the promotions
probably won’t continue much longer, but who can pass up a bargain?”

Jamie thinks to himself, “Adding to the menu would be a moderate investment. Still, how would it
look if I mimic Fill-to-the-Brim and offer protein shakes?”

© Development Dimensions International, Inc., MMXI. Revised MMXII. 8


MAKING HIGH-QUALITY DECISIONS

Source: Business Development Committee Member


Jamie met with Marci, head of the market district’s Business Development Committee, to get her
perspective on how other local businesses are doing. She aggressively promotes downtown
businesses like his. Here’s a portion of their conversation:

Marci: “Jamie, it’s nice to talk with you. Your timing is impeccable. Our committee met just
last night to discuss ways to increase awareness and customer traffic.”

Jamie: “Great! What can you tell me?”

Marci: “From what I’ve heard, over the last six months, most retail businesses in the
market district have been doing OK and are making money. The new health club is
drawing more people to the area, so most shops are seeing a small increase in
customer traffic. Also, we’re working on a full-scale promotional campaign to attract
more people to the district. One idea is to work with business owners like you to
create a coupon book with promotions. We’d try it for a year. Is that something that
interests you?”

Jamie: “Sure. Anything to increase traffic flow in my shop. I’m adding wireless Internet
access next month because I know the college students expect it.”

Marci: “You might be surprised that college students make up only about 3 percent of the
district’s target market. Most customers are business professionals—from a variety
of service-related industries—and visitors.”

Jamie: “Wow! I didn’t realize that.”

Marci: “Yes, indeed. We encourage our frequent customers to think of the market district as
their one-stop place to shop, eat, and entertain. It would be great if more shops like
yours would offer a wider array of food items. Our research indicates we don’t offer
enough choices for a good, inexpensive lunch. And would you consider staying open
longer in the evening?”

Jamie thinks to himself, “The committee has some good ideas. Maybe I should go along with
some of their plans. Some would require minimal investments, while others are more substantial.
On the other hand, I know my partners aren’t keen on making too many changes at this time.”

© Development Dimensions International, Inc., MMXI. Revised MMXII. 9


MAKING HIGH-QUALITY DECISIONS

Source: Sip-for-a-Spell Employees


Who knows better than the people who are actually on-site doing the work? Here’s what Jamie’s
employees had to say when he asked them why sales were declining:
x Joey: “A few people—I’d say like 10 over the last few weeks—have come in and asked for
protein shakes. I was polite and said that we didn’t offer them, but they all left anyway.
Several seemed like they were in a hurry to get their shake and go.”
x Melinda: “That happened to me a few times too, but I’ve also seen customers rolling their
eyes when they look at our prepackaged lunch items. Several have asked me when we’re
going to make sandwiches and other lunch items on site.”
x Diane: “I heard several customers talking the other day about how much they love
this place. They really like how you’ve decorated it and how open and friendly the
atmosphere is.”
x Alan: “Yeah, it’s pretty cool. I’m not into history all that much, but you really have some nice
pictures and antique stuff that people like to look at and talk about.”
x Kimberly: “It’s cozy. It’s nice to see people introducing themselves and starting
conversations. We just need to get some other people to love it too. Maybe we should
advertise more.”

© Development Dimensions International, Inc., MMXI. Revised MMXII. 10


MAKING HIGH-QUALITY DECISIONS

Two Questions for You


x What’s causing the decline in sales?

x What information led you to this conclusion?

© Development Dimensions International, Inc., MMXI. Revised MMXII. 11


MAKING HIGH-QUALITY DECISIONS

Summarizing the Problem or Opportunity


The quality of your summary of a problem or opportunity can be as important as the quality of
your analysis. When the problem or opportunity has significant impact, stakeholders need a clear
description of your findings; the effect on the business, work group, or organization;
recommended course of action; and, in many cases, your supporting data and information.
To make an effective problem or opportunity summary:
x State the opportunity or root cause of the problem. Depending on the complexity of the
situation, this can range from a short, simple statement to a much longer description.
x Describe the impact—on the business, work group, or organization—of taking no action.
Stakeholders need to know what’s at risk if the problem persists or if the opportunity slips
away. Whenever possible, describe the impact on business results and objectives.
x Recommend a course of action. With the analysis complete, it’s time to be decisive. Your
recommendation will take one of three directions:
– Address the issue, with the next step being to determine how to do that
(i.e., GENERATE Alternatives).
– Continue your analysis. Often, your original analysis will reveal new information
or lead to insights that warrant a reexamination of the problem or opportunity.
– Take no action because the problem or opportunity warrants no further action at this
time. If so, it’s wise to inform others you’ve involved to this point that you’ve opted to end
the process.
x Cite the information or data you’ve collected that supports your analysis and
recommendation. Depending on the significance of the situation and the amount of data
collected, this can range from a short summary to a detailed list. Good supporting data helps
build a strong case for your conclusions, which is important when your proposed course of
action will require stakeholder support or resources.

© Development Dimensions International, Inc., MMXI. Revised MMXII. 12


MAKING HIGH-QUALITY DECISIONS

Jamie’s Problem Summary


Jamie wrote this problem summary:

(State the opportunity or root cause of the problem)


I believe Sip-for-a-Spell’s significant sales decline in the last six months has been caused
by a failure to meet some specific customer needs as well as by increased competition from
Fill-to-the-Brim, with its new menu offerings and promotional campaign.

(Describe the impact of taking no action)


The current sales volume does not enable Sip-for-a-Spell to be profitable. If some changes
aren’t made, there is little hard evidence that sales will return to or exceed prior levels.

(Recommend a course of action)


I recommend swift action to generate alternatives, evaluate the best ones, and choose a
course of action so Sip-for-a-Spell can reverse its sales decline.

(Cite the information or data)


Information I collected to support this claim:
x Sales have declined 10 percent over the last six months—a drop not explained by
seasonal fluctuations or other economic conditions in the market district.
x Fill-to-the-Brim started offering and extensively promoting protein shakes and related
products four months ago. I believe this competitor is drawing away some of our
fitness-minded customers.
x I have learned from several sources that Sip-for-a-Spell customers would like to see
changes, such as more beverage selections, an expanded lunch menu, and a better
environment to relax and spread out.

© Development Dimensions International, Inc., MMXI. Revised MMXII. 13


MAKING HIGH-QUALITY DECISIONS

GATHER Information Team


What are some situations at work when it is difficult to “Gather to understand, not to confirm”?

When analyzing problems/opportunities in your work group, how can you help people to be
objective, especially when they have strong opinions?

INTERPRET Information Team


In what situations is it particularly challenging to draw reliable conclusions about the problem or
opportunity you’re examining?

What advice, tips, or best practices can you share to ensure that you conduct the most accurate
analysis possible?

Pitfalls Team
What advice, tips, or best practices can you share to avoid or overcome one or more of these
common pitfalls when analyzing problems or opportunities in your organization?
Missing the signs:

Treating the symptoms:

Being overconfident:

Thinking subjectively:

Going it alone:

Failing to act:

© Development Dimensions International, Inc., MMXI. Revised MMXII. 14


MAKING HIGH-QUALITY DECISIONS

Your Problems/Opportunities
Think about the initiatives you are responsible for supporting or the objectives you are
responsible for achieving over the next 6–12 months. They should be tied to your organization’s
strategic goals and objectives. For example, they might involve:
x Increasing productivity or revenue.
x Reducing costs.
x Getting products to market more quickly.
x Serving customers more effectively.

With these goals and objectives in mind, consider the important decisions you and your team will
need to make in the months ahead to either solve problems, meet challenges, or make good
processes even better. Then, write the following information in your Decision-Making Planner
under the IDENTIFY step:
x Problem/Opportunity.
x Business objective or initiative it supports.
x Analysis/Judgment required.

© Development Dimensions International, Inc., MMXI. Revised MMXII. 15


MAKING HIGH-QUALITY DECISIONS

Jamie’s Problem Statement


I believe Sip-for-a-Spell’s significant sales decline in the last six months has been caused
by a failure to meet some specific customer needs as well as by increased competition from
Fill-to-the-Brim, with its new menu offerings and promotional campaign.

Your Ideas
Use this space to list your ideas for improving sales.

© Development Dimensions International, Inc., MMXI. Revised MMXII. 16


MAKING HIGH-QUALITY DECISIONS

GENERATE Alternatives

Tips and Techniques


Generate without evaluating. When you involve others in generating alternatives, leverage
their diverse perspectives, expertise, and creativity. You want to generate as many alternatives
as possible without evaluating. Brainstorming is a proven approach. List the ideas without
comment. Keep asking, “What else might work?”

Use creative-thinking approaches. These include:


x Role playing. Explore options from various perspectives, such as from your manager,
customers, or colleagues.
x Amplifying initial ideas. In this variation of brainstorming, each idea is discussed in turn.
Instead of considering the idea as is, the charge for all group members is to expand or
reshape it into one that is viable.
x Mind mapping. This is a method of illustrating a topic that has many elements; it
encourages divergent thinking versus linear thinking.

Challenge the status quo. Most people naturally default to existing, accepted ideas and
approaches—the status quo. To challenge the status quo, consider:
x Involving people who are new to the team or organization. They may offer ideas that are
out of the mainstream for your organization.
x Asking “what if?” For example:
– What if you could consider any option, not just the most acceptable or safest?
– What if you were facing this problem or opportunity outside the workplace?
– What if you had unlimited funds or approval for any option?

Pitfalls in this Step


x Going it alone. Failing to involve others can result in missing viable alternatives.
x Thinking subjectively. People who have already decided on the alternatives they will
consider are likely to ignore other possibilities.

© Development Dimensions International, Inc., MMXI. Revised MMXII. 17


MAKING HIGH-QUALITY DECISIONS

Another Email from Jamie


TO: Silent Partners

FROM: Jamie

SUBJECT: Our Next Steps

I appreciate all your hard work in coming up with alternatives. You’ve given me some great
ideas. Here’s where things stand right now:
x I’m not ready to sell the business or radically change the basic premise of Sip-for-a-Spell—
that people of all ages and walks of life want a place in the market district where they can
relax and enjoy each other’s company over their favorite beverage.
x I’m open to menu or environment changes that would require a modest investment and
maybe some employee training, as long as they don’t involve a huge, up-front investment.
x I need a solution that will return sales and profitability at least to previous levels within four to
six months.

© Development Dimensions International, Inc., MMXI. Revised MMXII. 18


MAKING HIGH-QUALITY DECISIONS

Jamie’s Decision Criteria


What Jamie shared in the email was actually the decision criteria—the measurable, observable
characteristics a decision choice must meet. Most often, they relate to cost, quality, quantity,
and time. Defining your decision criteria is an essential step in evaluating alternatives. You’ll
base your final decision on which alternative best meets your criteria.

Given the information Jamie has provided, what are some important criteria for this decision
relative to:
x Cost?

x Quality?

x Quantity?

x Time?

© Development Dimensions International, Inc., MMXI. Revised MMXII. 19


MAKING HIGH-QUALITY DECISIONS

EVALUATE and CHOOSE Alternative


From reading your lists and after talking with his other business partner, Jamie has
narrowed the choices to the three alternatives below and on the next page.

Jamie realizes that he will need to do some additional advertising to promote the
alternative he chooses. One more thing: Clearly, Jamie doesn’t have the resources to
undertake more than one of these alternatives in the next year, so he needs to make sure
that his choice will return Sip-for-a-Spell to profitability.

Sip-for-a-Spell Alternatives
Alternative #1: Add protein shakes and other fitness-related products.
x The equipment investment would be relatively small compared to other alternatives.
x The cost of initial and ongoing inventory of product (e.g., flavors of protein powder for shakes,
protein bars, and cookies) would be medium, as buyers want variety. For each protein shake
or related item sold, the profit margin likely would be less than on other beverages due to the
relatively higher product cost.
x Training costs to educate employees on fitness products and in how to prepare protein
shakes would be relatively low.
x Jamie expects his staffing costs to rise slightly. Instead of hiring new employees, he feels
that current staff would be glad to work a few more hours each week.

Alternative #2: Expand the lunch menu.


x The menu would include made-to-order sandwiches and easily prepared hot meals.
x Because there is a small commercial kitchen in the back area of Sip-for-a-Spell, the
investment in food preparation equipment, dinnerware, and flatware would be medium
compared with other alternatives.
x Inventory of food products would be relatively small, especially if the menu starts out small
and the hot luncheon specials are popular. Jamie calculates that there would be a good
profit margin on these new food items, although it would be lower than on beverages.
x Investment in employee training on food preparation, safety, and presentation would be
medium. Jamie’s experience in the restaurant business tells him that customers have high
expectations about how food is prepared.
x Jamie anticipates that initially he would need one new employee to handle the kitchen duties
and might need to add a second person as business picks up.

© Development Dimensions International, Inc., MMXI. Revised MMXII. 20


MAKING HIGH-QUALITY DECISIONS

Alternative #3: Remodel and expand into the vacant storefront next door.
x The owner of this retail property is eager to lease the storefront at an attractive rate. He’s
also willing to make the structural changes needed to blend the new space into Sip-for-a-
Spell’s environment so that it doesn’t look like an add-on.
x Jamie’s investment in appropriate furniture and wall décor would be more than the other two
alternatives and would approach the upper limit of what he can afford.
x Jamie has always wanted to expand. He thinks he can generate more business through
networking events such as morning and lunchtime discussion groups.
x No employee training would be needed, and Jamie feels that he wouldn’t need to
add staff.

Instructions
Here’s the process for evaluating each alternative:
1. Evaluate these three alternatives as a team.
2. Start by assessing the risk of each alternative using the Risk and Reward tool (page 22).
3. Evaluate each option using the Impact/Effort Grid (pages 23–24).

© Development Dimensions International, Inc., MMXI. Revised MMXII. 21


MAKING HIGH-QUALITY DECISIONS

Risk and Reward

Use this tool to examine the levels of risk and reward of the alternatives you are considering.
You also can use it to think of ways to prevent or minimize the risk. For each alternative, note
long-term benefits, what could go wrong and the probability of this occurring, and what could
be done to prevent or minimize these risks.

Decision Alternative #1: Add protein shakes and other fitness-related products.

What are the rewards or long-term benefits of this alternative?

What could go wrong in choosing this alternative? Probable occurrence:


† Very unlikely
† Somewhat unlikely
† Somewhat or very likely
How would you prevent or minimize the risks of choosing this alternative?

Decision Alternative #2: Expand the lunch menu.

What are the rewards or long-term benefits of this alternative?

What could go wrong in choosing this alternative? Probable occurrence:


† Very unlikely
† Somewhat unlikely
† Somewhat or very likely
How would you prevent or minimize the risks of choosing this alternative?

Decision Alternative #3: Remodel and expand into the vacant storefront next door.

What are the rewards or long-term benefits of this alternative?

What could go wrong in choosing this alternative? Probable occurrence:


† Very unlikely
† Somewhat unlikely
† Somewhat or very likely
How would you prevent or minimize the risks of choosing this alternative?

© Development Dimensions International, Inc., MMXI. Revised MMXII. 22


MAKING HIGH-QUALITY DECISIONS

Impact/Effort Grid
This tool helps you choose actions that will achieve maximum results through minimum effort.
Use it:
x To decide which action(s) to take from among several alternatives.
x When you’re considering actions that require varying amounts of effort or expense and that
will have varying results or impact.
x When you can take only a limited number of actions.

Instructions
1. Record your decision goal below. This is what you want to accomplish by making the
decision.
2. List the options you’re considering in the table on the next page and then assign a number to
them.
3. Discuss what impact each option would have on the decision goal. Rate each option as
follows, and then write your rating in the Impact column of the table:
H = High M = Medium L = Low

4. Discuss how much effort and expense would be needed to carry out each option. Rate each
option as follows and write your rating in the Effort column:
1 = Little 2 = Moderate 3 = Great

5. On the small grid below the table, plot each option number according to the rating you
gave it.
6. Choose the option(s) that gives the highest impact for the least effort.

Decision Goal: To return to profitability in four to six months with a moderate investment.

© Development Dimensions International, Inc., MMXI. Revised MMXII. 23


MAKING HIGH-QUALITY DECISIONS

Impact/Effort Grid (cont’d)


Options Impact Effort
1. Add protein shakes and other fitness-related
products.

2. Expand the lunch menu.

3. Remodel and expand into the vacant


storefront next door.

I
High
M

P
Medium
A

C
Low
T

1 2 3
Little Moderate Great

EFFORT

Interpreting an Impact/Effort Grid: This tool helps you examine decision options by estimating
the amount of time and cost each option will take to accomplish (i.e., the effort) compared to the
results you hope to achieve (i.e., the impact). In most cases, options with greater impact than
effort are more desirable. This tool does not include all factors used to make decisions, such as
each option’s best-case/worst-case scenarios, time to complete, and organizational support.

© Development Dimensions International, Inc., MMXI. Revised MMXII. 24


MAKING HIGH-QUALITY DECISIONS

Key Points for Your Presentation


x State the alternative that best meets Jamie’s criteria.

x State your most compelling rationale for your choice.

© Development Dimensions International, Inc., MMXI. Revised MMXII. 25


MAKING HIGH-QUALITY DECISIONS

Sip-for-a-Spell Presentations
Instructions: As you listen to the other teams’ presentations, please record any comments or
suggestions that you feel were strong points and that demonstrated good application of the
Decision-Making Process. Also, note any questions or concerns you would have in accepting
their recommended course of action.

French Roast Team


Strong points this team made:

Hazelnut Team
Strong points this team made:

House Blend Team


Strong points this team made:

Vanilla Bean Team


Strong points this team made:

© Development Dimensions International, Inc., MMXI. Revised MMXII. 26


MAKING HIGH-QUALITY DECISIONS

Notes

© Development Dimensions International, Inc., MMXI. Revised MMXII. 27


MAKING HIGH-QUALITY DECISIONS

Notes

© Development Dimensions International, Inc., MMXI. Revised MMXII. 28


Reflections
How has this session changed my perspective on making high-quality decisions?

From all that I’ve experienced in this session, what would be the most helpful to share with my team?

Who in my organization effectively uses the skills or knowledge I’ve learned, and how can I continue to develop
through this person’s example?

How can I use the skills from this session outside my work—with my family, friends, community, etc.?
To refresh and expand your learning, use
a QRC app on your mobile device to scan this
code, or visit: http://www.ddiworld.com/mhqd

Making High-Quality Decisions Learn more about Development Dimensions International (DDI)
by visiting www.ddiworld.com
Part Number: EXLMHQDCJV1-0

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This publication is printed entirely on paper from certified sustainable resources and is
part of our larger commitment to environmental, corporate, and social sustainability.
*JMQX*
JMQX
The Talent Management Expert ~
MAKING HIGH-QUALITY DECISIONS JOB AID

• Watch for subtle • Gather to understand,


changes and patterns. not to confirm. • Consider biases or blind spots.
• Check internal and • Ask, “How much is • Leverage intuition based on experience.
external sources. enough?” • Describe the problem or opportunity.

• Generate
without
evaluating.
• Use creative-
thinking
approaches. • Act with appropriate urgency.
• Challenge the • Communicate the business case.
status quo. • Plan the implementation.

• Use your “enterprise lens.” • Leverage intuition based on experience.


• Openly discuss biases and influences. • Identify contingencies.
• Develop best-case/worse-case scenarios. • Check your decision with stakeholders,
manager, colleagues.

*HCWX* Part Number: EXLMHQDJA


File Name: AE-EXL-MHQD-JA
HCWX

© Development Dimensions International, Inc., MMXI. Revised MMXII. 1


MAKING HIGH-QUALITY DECISIONS JOB AID

Decision-Making Pitfalls How to Involve Others


• Missing the signs • When identifying problems or opportunities,
Failing to see or interpret subtle or early signs of informally discuss your ideas with people who
problems or opportunities. have the experience or knowledge to either
confirm your thinking or help you see the issues
• Treating the symptoms
differently.
Failing to analyze the basics of a problem or
opportunity; addressing only the immediate • When gathering information, ask for help in
problem rather than the underlying issues. identifying sources and collecting information.
Check the reliability of your sources before using
• Being overconfident
their information in your analysis.
Having overconfidence in your own thinking,
experience, or ability to affect future outcomes; • When interpreting information, cultivate
being excessively optimistic about the outcome “internal critics” who will alert you to biases and
of planned actions or the likelihood of positive blind spots. Also, bring experts and key
events. stakeholders into your analysis to boost the
quality of your findings and to gain their
• Thinking subjectively
commitment and support.
Making analyses and judgments based on your
own or others’ impressions, feelings, and • Before communicating your business case or
opinions rather than external facts. sharing your problem/opportunity summary,
be sure that the key people you involved in the
• Going it alone
analysis have had an opportunity to review and
Failing to tap others’ thinking and perspectives
give feedback on your summary.
in analyzing situations and formulating
judgments; failing to involve stakeholders when • When generating alternatives, include all key
discussing findings and agreeing on actions. stakeholder groups. Also, consider involving
creative thinkers and those open to new ideas.
• Failing to act
Waiting for someone else to take the lead in • When evaluating alternatives, involve your
resolving problems or making judgments; manager and key stakeholders. For difficult
viewing a problem or decision as someone decisions, seek advice or coaching on how to
else’s responsibility; failing to follow through on use decision-making tools and techniques most
a decision. effectively.

• When choosing the best alternative, be sure to


gain others’ commitment to the chosen
alternative in order to minimize issues and
barriers during its implementation.

• When committing to action, communicate your


plan and distribute it widely to ensure that all
perspectives are considered during
implementation.

© Development Dimensions International, Inc., MMXI. Revised MMXII. 2


MAKING HIGH-QUALITY DECISIONS

Decision-Making Planner
1. IDENTIFY the problem/opportunity.

A • Watch for subtle changes and patterns


• Check internal and external sources
Whom to involve:

A 2. GATHER information.
• Gather to understand, not to confirm Whom to involve:
• Ask, “How much is enough?”
L

S 3. INTERPRET information.
• Consider biases and blind spots Whom to involve:
• Leverage intuition based on experience
• Describe the problem or opportunity
I

S
Write your formal problem/opportunity summary:
• State opportunity or root cause
• Describe the impact of taking no action
• Recommend course of action
• Cite information used

• Missing the Signs • Being Overconfident • Going It Alone


Pitfalls:
• Treating the Symptoms • Thinking Subjectively • Failing to Act

*H9WM* Part Number: EXLMHQDDP


File Name: AE-EXL-MHQD-DP
H9WM

© Development Dimensions International, Inc., MMXI. Revised MMXII. 1 Permission is granted to photocopy this page for internal use only.
MAKING HIGH-QUALITY DECISIONS

Decision-Making Planner (cont’d)


4. GENERATE alternatives.

J •

Generate without evaluating
Use creative-thinking approaches
Whom to involve:
• Challenge the status quo

U
D
5. EVALUATE alternatives and risks.
G • Use your “enterprise lens” Whom to involve:
• Openly discuss biases and influences
• Develop best-case/worst-case scenarios
M
E
6. CHOOSE alternative.
N
• Leverage intuition based on experience Whom to involve:
• Identify contingencies
T • Check your decision with stakeholders, manager, colleagues

7. COMMIT to action.
• Act with appropriate urgency Whom to involve:
• Communicate the business case
• Plan the implementation

• Missing the Signs • Being Overconfident • Going It Alone


Pitfalls:
• Treating the Symptoms • Thinking Subjectively • Failing to Act

© Development Dimensions International, Inc., MMXI. Revised MMXII. 2 Permission is granted to photocopy this page for internal use only.
MAKING
HIGH-QUALITY
DECISIONS
Resource Guide
Making High-Quality Decisions Resource Guide

Table of Contents
Decision-Making Pitfalls .............................................................................................................. 1

Decision-Making Process: Analysis


1. IDENTIFY the problem/opportunity ..................................................................................... 4
2. GATHER information .......................................................................................................... 6
3. INTERPRET information ..................................................................................................... 9

Writing Effective Problem/Opportunity Summaries................................................................ 13


Example Problem Summary .................................................................................................. 14
Example Opportunity Summary ............................................................................................. 15

Decision-Making Process: Judgment


4. GENERATE alternatives ................................................................................................... 16
5. EVALUATE alternatives and risks .................................................................................... 19
6. CHOOSE alternative ......................................................................................................... 24
7. COMMIT to action ............................................................................................................. 26

Worksheets and Tools


Decision-Making Planner ....................................................................................................... 29
Gathering Information Worksheet (GATHER)........................................................................ 31
Interpreting Information Checklist (INTERPRET) .................................................................. 34
Risk and Reward (EVALUATE) ............................................................................................. 35
Impact/Effort Grid (EVALUATE) ............................................................................................. 36
Balance Sheet (EVALUATE) ................................................................................................. 38
Criteria Screen (EVALUATE) ................................................................................................. 39
Planning Your Implementation (COMMIT) ............................................................................. 41
Communicating with Others: Who and How? (COMMIT) ..................................................... 42
Decision Postmortem (COMMIT) ........................................................................................... 43

Self-Assessment ......................................................................................................................... 45

This course is part of DDI’s global Interaction Management® system for developing exceptional leaders and individual
contributors. It also is offered and sold under the trademarks Interaction Management®: Exceptional Performers Series,
Interaction Management®: Exceptional Leaders Series, IM: EX®, IM: ExPSM, and IM: ExLSM.

© Development Dimensions International, Inc., MMXI. Revised MMXII. Pittsburgh, Pennsylvania. All rights reserved under U.S.,
International, and Universal Copyright Conventions. Published in the United States of America, the United Kingdom, Canada, Australia,
and other countries. Development Dimensions International, Inc., prohibits the reproduction of any portion of these materials in any
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Furthermore, clients are required to provide each viewer of the video with a complete set of related printed or digital materials for that
person’s use during and after the training. Such materials are not intended for or authorized for use by others. DDI and marks designated
with ® are trademarks of Development Dimensions International, Inc., and are registered in the United States and several international
jurisdictions.
MAKING HIGH-QUALITY DECISIONS RESOURCE GUIDE

Decision-Making Pitfalls
Everyone is susceptible to making mistakes and falling into common traps or pitfalls when making
decisions. Being aware of the following obstacles and taking steps to overcome them will make
you a better decision maker.

Missing the Signs


Failing to see or interpret subtle or early signs of problems or opportunities.

Mary should have realized that the small but steady increase in the team’s error rate signified
a larger issue. She was so busy that she decided to wait and see if the rate would continue
to increase before taking action. It did, and now two of the company’s best customers have
threatened to pull their business.

Treating the Symptoms


Failing to analyze the basics of a problem or opportunity; addressing only the immediate problem
rather than the underlying issues.

Chris is a sales director whose team has always achieved or exceeded its goals. Sales are
down, and he’s looking for reasons. His sales prospecting dashboard indicates that the
number of sales leads has gradually decreased over the last three months—about the time
that Marketing launched its new advertising campaign. Although he has no hard evidence,
he’s convinced the campaign is to blame. He’s decided to ask Marketing to revamp the
campaign’s message so that it will generate more leads.

© Development Dimensions International, Inc., MMXI. Revised MMXII. 1


MAKING HIGH-QUALITY DECISIONS RESOURCE GUIDE

Being Overconfident
Having overconfidence in your own thinking, experience, or ability to affect future outcomes;
being excessively optimistic about the outcome of planned actions or the likelihood of positive
events.

Barbara leads a team of programmers charged with building an e-portal that would greatly
simplify how clients access multiple applications at the same time. Although this type of
e-portal has never been built using their programming language, she’s sure her team can do
it and still meet a key client’s deadline. The team has completed many such difficult
assignments in the last two years.

Note: Overconfident people often fail to explore or examine all the relevant information available
to them. Instead, they often feel that they can make decisions with less information than is
reasonable or prudent.

Thinking Subjectively
Making analyses and judgments based on your own or others’ impressions, feelings, and
opinions rather than external facts.

Carl has supervised the second-shift assembly unit for 10 years. During the last six months,
the plant manager has been providing Carl with productivity information that shows his unit
has been responsible for more assembly errors than any other shift. Carl has countered that
his unit is tasked with the most complex orders and shouldn’t be held accountable for three
recent assembly errors on orders that were started on the first shift but finished on the
second shift.

Note: This pitfall differs from Being Overconfident in that it occurs when people fail to view or
evaluate information objectively. It causes people or teams to over- or undervalue information
based on their own opinions or biases.

© Development Dimensions International, Inc., MMXI. Revised MMXII. 2


MAKING HIGH-QUALITY DECISIONS RESOURCE GUIDE

Going It Alone
Failing to tap others’ thinking and perspectives in analyzing situations and formulating judgments;
failing to involve stakeholders when discussing findings and agreeing on actions.

Lee is a new supervisor in the Client Relations Group. One of her first tasks is to create and
send a satisfaction survey to top clients. Its purpose is to gather key information about the
kinds of services clients want and how the company can better meet their needs. Lee was
assigned this task because she had experience in developing client surveys while with her
previous employer. Instead of checking with sales managers, the project delivery group, or
even her experienced team, Lee has decided to develop the survey on her own and have it
distributed so the results will be available before the first quarter ends.

Note: Generally, Going It Alone occurs for one of two reasons:


1. People who are inexperienced in their role might feel they’re expected to make decisions on
their own, so they don’t involve others to the extent they should.
2. Very experienced and skilled individuals often choose not to involve others as much as they
should because they believe they have sufficient analysis and judgment skills to make
decisions on their own.

In both of these situations, Going It Alone can lead to lower-quality decisions, as it is more difficult
to implement a decision made without the necessary involvement of key colleagues, partners,
and/or stakeholders.

Failing to Act
Waiting for someone else to take the lead in resolving problems or making judgments; viewing a
problem or decision as someone else’s responsibility; failing to follow through on a decision.

Matt leads the Corporate Services Group that has several responsibilities, including shipping
materials to clients. His team has researched alternative shipping options and has
recommended a plan that, on the surface, seems as if it would save the company an average
of 5–7 percent in shipping costs over the next year. Although the choice seems clear, Matt is
hesitant to formally implement the new option because it would mean he must communicate
the change to a number of different groups.

© Development Dimensions International, Inc., MMXI. Revised MMXII. 3


MAKING HIGH-QUALITY DECISIONS RESOURCE GUIDE

Decision-Making Process: Analysis

1. IDENTIFY the problem/opportunity.


What sparks the decision-making process? In some cases, you are asked to make a
decision, like when your manager asks you to recommend equipment for purchase, find ways to
reduce costs, or delegate a new assignment. In other cases, you become aware of an issue that
needs to be addressed or a potential opportunity.

The key to recognizing problems and opportunities is to actively look for them and encourage
teammates and colleagues to do the same. Even problems, when spotted early, can ultimately
be turned into opportunities. These initial observations often lead to ideas for improving
processes or customer service, reducing costs, or improving employee morale or productivity.
In turn, these ideas often require decisions.

Tips and Techniques


Watch for subtle changes and patterns. While some problems are obvious and pressing,
others are more subtle, especially in their early stages. Likewise, opportunities sometimes
present themselves through a subtle trend or pattern of events that must be pieced together.
Here are just a few signs of potential problems or opportunities:
• Coworker complaints about processes, products, services, or conditions.
• Missed deadlines.
• Jobs being done incorrectly.
• An unusual number of misunderstandings or conflicts between departments.
• A trend or pattern in customer feedback.
• Customer requests for a product or service.

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MAKING HIGH-QUALITY DECISIONS RESOURCE GUIDE

Check internal and external sources. Problems and opportunities can be identified through
both internal and external data sources:
• Internal data—includes sales or performance records, ideas taken from suggestion boxes,
and informal communication gathered via your network, team meetings, task forces, quality
committees, and even hallway conversations.
• External data—includes competitor information, research reports, and customer surveys and
feedback.

Pitfalls in This Step


• Treating the symptoms. Jumping to conclusions without fully analyzing the problem or
opportunity can result in addressing only the immediate problem or its symptoms rather than
the weightier, underlying issues.
• Missing the signs of a problem or opportunity. This can be caused by failing to routinely
review data sources or failing to gather information to confirm subtle trends, patterns, or
changes that might signal a problem or opportunity.

Ways to Involve Others


• Informally discuss your ideas with people who have the experience or knowledge to either
confirm your thinking or help you see the issues differently.
• Seek or confirm support for resources required to conduct a full analysis.

© Development Dimensions International, Inc., MMXI. Revised MMXII. 5


MAKING HIGH-QUALITY DECISIONS RESOURCE GUIDE

2. GATHER information.
You’ve identified a significant problem or opportunity, and you know you need to act on it.
Most people would have an immediate urge to start problem solving. Resist this urge! Reacting
impulsively can lead to a bad decision that doesn’t address the real issue, problem, or
opportunity. Instead, gather the information needed to better understand the situation.

For complex situations, organize data collection by listing all information needed (data, history,
best practices, expert opinions, etc.) and identifying sources. You also might need to organize
the collection of data, for example, by asking people to help you and assigning data-gathering
responsibilities.

Sort . . .
Sort this information into logical clusters, such as:
• Background information. What occurred? How often? What were the circumstances?
Who was involved?
• Empirically researched information. What does the research say?
• Opinions from experts. What do the subject matter or technical experts say?
• Others’ personal experiences and viewpoints. What do those involved or affected by the
situation say? Has anyone experienced something similar?

For routine situations, gathering information might be accomplished quickly (e.g., by calling
someone or reviewing a report). Even in routine, everyday situations, gathering some data to
better understand the issue, problem, or opportunity can mean the difference between drawing
sound conclusions and making a misdiagnosis.

. . . Then Source
Once you know what information you need, determine where you can get it. Sources of
information include:
• People (e.g., experts, suppliers, customers, those closest to a situation, or those
implementing the decision).
• Internal reports (e.g., production, sales, quality, customer complaints).
• Company intranet or the Internet.

© Development Dimensions International, Inc., MMXI. Revised MMXII. 6


MAKING HIGH-QUALITY DECISIONS RESOURCE GUIDE

• Internal or industry survey data, external benchmark studies, or competitive information.


• Databases.
• Business or equipment manuals.
• Industry or trade journals.

Tips and Techniques


Gather to understand, not to confirm. There’s a big difference between objective fact-finding
and collecting data to prove a point or confirm one’s thinking. The key is to delay judgment until
all the evidence has been collected and analyzed. Gather information from all relevant sources,
including information that might disprove your or others’ initial conclusions.

Ask, “How much is enough?” Balance the need to gather information with the need to draw
conclusions and act within your window of opportunity. A routine analysis of an everyday
situation might require only one or two phone calls or a quick review of some reports. However,
when analyzing major problems or opportunities, you’ll need to decide when you’ve collected
enough information. Stop gathering information when:
• You’ve collected information from all perspectives.
• You believe that you and others have enough information to make a decision that will elicit
everyone’s confidence.
• You have reliable information from all of your primary sources.
• No new information is emerging.

© Development Dimensions International, Inc., MMXI. Revised MMXII. 7


MAKING HIGH-QUALITY DECISIONS RESOURCE GUIDE

Pitfalls in This Step


• Being overconfident in your ability to interpret the cause of problems or to make any
solution work might lead you to shortcut or eliminate this step. This can result in
misdiagnosing the problem or opportunity and making a poor decision.
• Thinking subjectively can lead you to ignore external facts or gather only information that
confirms your feelings and opinions.

Ways to Involve Others


• Ask for help in identifying sources and collecting information.
• Check the reliability of your sources before using their information in your analysis.

Use This Tool


Gathering Information Worksheet (pages 31–33)—Provides a step-by-step approach to
identifying information sources, checking their reliability, and confirming that you have sufficient
data.

© Development Dimensions International, Inc., MMXI. Revised MMXII. 8


MAKING HIGH-QUALITY DECISIONS RESOURCE GUIDE

3. INTERPRET information.
Interpreting information involves thinking logically and critically about the data you’ve
gathered and drawing objective conclusions from it. Inadequate or inaccurate analysis can lead
to poor decision making and wasted time and energy.

For routine situations, you’ll draw conclusions from the data you’ve collected using your
reasoning skills. Perhaps you’ll consult your manager or a colleague to check your initial findings.
However, when there are large amounts of data and the analysis is more difficult or complex,
you’ll want to use a more scientific approach.

Compile the Data


To integrate large amounts of complex data, use a system that makes it easy to interpret and, if
necessary, explain the information to others. Tools you can use include:
• Line or bar graphs. These explain the relationship between two factors. For example, use
a line graph to show how sales have increased or decreased over a 12-month period. Or,
use a bar graph to compare this year’s sales figures to last year’s.
• Matrices or grids. Matrices or grids show relationships between data. For example, a
training grid might list skills to be developed across the top and courses offered down the left
side. Based on the information you’ve gathered, you would complete the grid by showing
which courses develop which skills. This approach shows any gaps or duplication of effort.
• Flowcharts. These are particularly useful for explaining processes. They depict a starting
point, an end point, and every step in between. Use flowcharts to identify problems such as
bottlenecks in a process and redundant efforts.
• Fishbone diagrams. These diagrams can help you determine the effect one piece of
information has on another. As a result, you can identify reasons for problems.

© Development Dimensions International, Inc., MMXI. Revised MMXII. 9


MAKING HIGH-QUALITY DECISIONS RESOURCE GUIDE

Identify Trends, Associations, and Cause-Effect Relationships


People use three types of logic to reach conclusions:
• Inductive reasoning draws a general conclusion from several specific facts. The more
repetitive data you have, the more you can justify making a generalization from it. For
example, if two or more customers complain about a faulty part, then you might reason that
the part is defective.
• Deductive reasoning draws a specific conclusion from a general or universal statement or
premise. For example, because a part in the current batch is defective, the next batch
coming off the manufacturing line probably contains one or more defective parts.
• Cause-and-effect reasoning observes a relationship between two separate pieces of
information and infers that one causes the other. For example, an increase in consumer
product awareness could be the result of a three-month ad campaign.

These three types of logic are not mutually exclusive; people use a combination of reasoning all
the time. You will use all of them to critically evaluate information, drawing conclusions from the
data you’ve gathered. Your goal is to weigh the information objectively and look for links between
distinct pieces of data. Some links include:
• Comparisons—similarities and differences between your current situation and other
situations inside or outside the organization.
• Connections—ties between your current situation and distinct pieces of information and the
people involved.
• Changes—new occurrences or deviations from expectations.
• Trends—a general tendency toward improvement or deterioration.

In the decision-making process, identifying trends, associations, and cause-effect relationships is


one of the most challenging and critical tasks. But by accurately analyzing the data, separating
issues, and remaining objective, you will be more focused later in the process and equipped to
use appropriate logic, leading to the right decision.

© Development Dimensions International, Inc., MMXI. Revised MMXII. 10


MAKING HIGH-QUALITY DECISIONS RESOURCE GUIDE

Tips and Techniques


Consider biases or blind spots. Everyone approaches situations with biases and
preconceptions based on personal experience, interests, or other factors. To minimize the impact
of these subjective factors, first examine personal influences that could cause you to discount
facts or skew your interpretation of data. Techniques you can use to be more objective include:
• Taking both sides. Bring together people with diverse opinions and interests. Make a
simple balance sheet and ask everyone to list points on both sides but to withhold judgment
until the chart is completed. This usually results in a more comprehensive list of pros and
cons by assembling insights rather than conclusions.
• Cultivating critics. Although annoying at times, that colleague who tells you when you’re
not listening to others or that you are discouraging contrasting viewpoints is an invaluable
asset. Encourage criticism by seeking and accepting feedback. Involve “trusted critics” in
observing and providing input into your analysis decision-making efforts.
• Openly discussing biases and influences. Rather than ignore biases, bring them out in
the open where they can be discussed and understood. Make this discussion easier for
others by disclosing your own biases and their origins.

One of the greatest safeguards against biases in analysis and decision making is to adhere to a
strong, formal process. The Decision-Making Process provides just such a structure, with
steps for gathering and interpreting information, and then for generating, evaluating, and
choosing alternatives.

Leverage intuition based on experience. Intuition is a by-product of accumulated experience


and countless repetition. Aspiring airline pilots follow a rigid decision-making model in training.
As they drill through thousands of hours in simulated situations, their decisions become
automatic. The brain instantly—and unconsciously—looks for, recognizes, and sorts through
cues and patterns to interpret the information at hand.

The accumulation of experience, contrary to some earlier conceptions, does not weigh down
people by forcing them to sift through a lifetime of data. Indeed, it frees them to act and enables
them to move their mind into a sort of “unconscious overdrive” as they interpret data. However,
intuition is “real” only when born of experience. Someone who is in uncharted waters would be
wise not to trust his or her intuition.

© Development Dimensions International, Inc., MMXI. Revised MMXII. 11


MAKING HIGH-QUALITY DECISIONS RESOURCE GUIDE

Describe the problem or opportunity. The quality of your summary of a problem or opportunity
can be as important as the quality of your analysis. When the problem or opportunity has
significant impact, stakeholders need a clear description of your findings; the effect on the
business, work group, or organization; your recommended course of action; and, in many cases,
your supporting data and information. For less significant situations, you might need to only
communicate this information informally.

If you need to gain commitment from others to take action, you can help them along by explaining
the process you used to arrive at conclusions—including the data collected, the sources you
collected it from, and how it was compiled and analyzed—and the support you’ll need to move
forward.

See the next page for guidelines on crafting an effective problem/opportunity summary.

Pitfalls in This Step


• Going it alone. Failing to tap others’ thinking and perspectives when interpreting information
and reaching conclusions can lead to faulty analysis or lack of support for conclusions.
• Thinking subjectively. This means relying on your feelings or opinions instead of external
facts or discounting or overemphasizing information that supports someone’s conclusions.
This can erode others’ confidence in your conclusions and the eventual decision.

Ways to Involve Others


• Cultivate “internal critics” who will alert you to your biases and blind spots.
• Involve experts and key stakeholders in the analysis.
• Share conclusions with stakeholders; gain commitment or support for acting on conclusions.

Use This Tool


Interpreting Information Checklist (page 34)—This tool lists prompting questions to check that
you have interpreted information accurately and objectively.

© Development Dimensions International, Inc., MMXI. Revised MMXII. 12


MAKING HIGH-QUALITY DECISIONS RESOURCE GUIDE

Writing Effective Problem/Opportunity Summaries


An effective problem or opportunity summary would include the following elements:
• State the opportunity or root cause of the problem. Depending on the complexity of the
situation, this can range from a short, simple statement to a much longer description. For
example, you might offer a more in-depth description of the problem when the root cause
you’ve identified is contributing to one or more other problems. To add validity to your
conclusions, your summary would include a description of these problems and their
relationship to the root cause.
• Describe the impact—on the business, work group, or organization—of taking no action.
Stakeholders need to know what’s at risk if the problem persists or if the opportunity slips
away. Whenever possible, describe the impact on business results and objectives.
• Recommend a course of action. With the analysis complete, it’s time to be decisive.
Your recommendation will take one of three directions:
– Address the issue, with the next step being to determine how to do that
(i.e., GENERATE Alternatives).
– Continue your analysis. Often, your original analysis will reveal new information or lead
to insights that warrant a reexamination of the problem or opportunity.
– Take no action because the problem or opportunity warrants no further action at this
time. If so, it’s wise to inform others you’ve involved to this point that you’ve opted to end
the process.
• Cite the information or data you’ve collected that supports your analysis and
recommendation. Depending on the significance of the situation and the amount of data
collected, this can range from a short summary to a detailed list. Good supporting data helps
build a strong case for your conclusions, which is important when your proposed course of
action will require stakeholder support or resources.

The following pages include an example of an effective problem summary and an opportunity
summary.

© Development Dimensions International, Inc., MMXI. Revised MMXII. 13


MAKING HIGH-QUALITY DECISIONS RESOURCE GUIDE

Example Problem Summary


(State the root cause of the problem)
In the last four months, we’ve seen an increase in the percentage of orders that require free
express shipping. These orders are being express-shipped because we’ve had to spend more
time picking and packing them, and we’ve had to ship more partial orders than usual. The root
cause traces to one of our suppliers, who has been late in delivering key components for three of
our most popular products. To date, this supplier, who offers low prices, has not responded to
our attempts to discuss this situation and the problems it’s causing.

(Describe the impact of taking no action)


If we don’t move quickly, the percentage of orders requiring free express shipping will continue at
its current unacceptable level or rise even more. The cost of express shipping, combined with the
additional labor to process each order, raises production costs and reduces profit margins to
unacceptable levels.

(Recommend a course of action)


Evaluate several possible courses of action to reduce our percentage of express shipments to
levels we had maintained until four months ago. We need to determine if our supplier can meet
our production needs. At the same time, we recommend a search for alternate suppliers, along
with the formation of a project team to reevaluate our picking and packing process to see if we
can reduce overall labor and shipping costs while still meeting customer needs.

(Cite the information or data)


• Last year’s inventory reports to confirm which component products were available when
needed and which were in short supply, leading to express shipments.
• Last year’s production reports to track employee productivity and order accuracy.
• Last year’s financial reports to determine total cost per order and profit margins.
• Interviews with leaders in departments that have an impact on order fulfillment to determine if
new staff or staff turnover has affected order processing. While there has been some
turnover, there were no correlations between staff changes and the percentage of orders
requiring express shipping.
• Interview with head of Purchasing to determine what steps have been taken to contact the
current supplier.

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Example Opportunity Summary


(State the opportunity)
Many of our customers are asking for technical training through web-conferencing software that
would replace on-site training delivered by one of our instructors. We have an opportunity to
respond by creating quality training that can be delivered “live” in a virtual classroom setting.
Clients have told us that our current web-conferencing platform is not engaging, which, for them,
casts doubt on our ability to respond.

(Describe the impact of taking no action)


If we don’t move quickly, we could lose market share. It’s likely that our major competitors will try
to capitalize and create the industry “standard.” We would then be seen as slow to respond and
challenged to match our competitors’ standard.

(Recommend a course of action)


Create a project team to evaluate the leading web-conferencing software platforms, and then
select the best one for designing highly engaging, virtual technical training. Our current platform
might be able to do that if we use all of its features and functions, so we recommend keeping it as
a potential alternative. Once we’ve selected a platform, we must move quickly to create our own
standard for delivering virtual training.

(Cite the information or data)


• In the last three months, more than half of our new customers and about one-third of existing
ones have formally inquired about virtual versus on-site technical training. Their chief
concerns are travel time and expenses incurred to bring their technicians to a central training
location. Source: Training Department records.
• Our attempts to deliver technical training via our current web-conferencing platform have not
been well received by key customer contacts or learners. Those sessions consistently earn
low marks for their design and especially for their lack of interaction between learners and the
trainer. Source: Satisfaction Survey Results: Technical Training Conducted Virtually—last
three months.
• Our current web-conferencing platform has features that we don’t use. However, it has been
difficult to get training from our software vendor, and there has been no funding to redesign
our training sessions.
• Recently, the Product Development Team has noticed an increase in communications from
several training associations citing the value of virtual classroom training.

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Decision-Making Process: Judgment

4. GENERATE alternatives.
Alternatives are important for all but minor decisions, when any way to meet the desired
outcomes and criteria works as well as another. Generating alternatives helps to ensure that you
build creative thinking into the decision-making process; this, in turn, results in better solutions. In
addition, people will have more confidence in your decision-making ability if they know you
consider more than one option.

Your ideas usually build on the information you gathered in step 3, but they also might come from
other creative-thinking approaches. The key is to be creative. List all your ideas—no matter
how unusual they might seem. When you review them, you’ll see some that not only could work,
but that also can be an achievable means for meeting your desired outcomes.

Tips and Techniques


Generate without evaluating. When you involve others in generating alternatives, leverage
their diverse perspectives, expertise, and creativity. At this point, you want to generate as many
alternatives as possible, and you can encourage this by supporting a free flow of ideas.
Brainstorming alternatives without evaluating their value or practicality is a proven approach. List
the ideas without comment. When it appears that the group has exhausted all possible options,
keep asking, “What else might work?” Call on people who have yet to contribute and look for
body language that might suggest that someone has an idea that he or she is hesitant to offer.

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Use creative-thinking approaches. These include:


• Role playing. Explore options from various perspectives, such as from your manager,
customers, or colleagues. Put yourself in their shoes; look at the situation from their point of
view and explore possible solutions they might suggest.
• Amplifying initial ideas. In most brainstorming sessions, some initial ideas might be
somewhat intriguing, yet seem unworkable or not fully developed. With this approach, each
idea is discussed in turn. Instead of considering the idea as is, the charge for all group
members is to expand or reshape it into one that is viable. To this end, members are
encouraged to build on others’ comments; thus, the entire exercise becomes a collaborative
effort to refine, rework, or distill ideas into more robust, viable ones. For example, two
technical support groups are merged into one department, and all members must be able to
handle all requests from internal partners and clients. An idea to divide the department into
subgroups according to product line leads to a positive discussion of the benefits of working
as regional, intact teams based on client location.
• Mind mapping. This is a method of illustrating a topic that has many elements; it
encourages divergent thinking versus linear thinking. To create a mind map, such as the
example below, write the topic in the center of a page or flip chart and circle it. Draw
branches from the top, bottom, and sides of the circle for every idea that relates to the topic.
Ideas could include initial possibilities, alternatives, needed actions, and evaluative criteria.
Whenever possible, use visuals, pictures, and color rather than words to enhance your
message and make it memorable.

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Challenge the status quo. Most people naturally default to existing, accepted ideas and
approaches—the status quo. Everyone has heard or even made the comment, “That’s not how
we do things here.” To challenge the status quo when generating alternatives, consider:
• Involving people who are new to the team or organization. They may offer ideas that are out
of the mainstream for your organization.
• Asking “what if?” For example:
– What if you could consider any option, not just the most acceptable or safest?
– What if you were facing this problem or opportunity outside the workplace?
– What if you had unlimited funds or approval for any option?

Pitfalls in This Step


• Going it alone. Failing to involve others can result in missing viable alternatives.
• Thinking subjectively. People who have already decided on the alternatives they will
consider are likely to ignore other possibilities.

Ways to Involve Others


• Include creative thinkers and people new to the team or organization.
• Represent key stakeholders and interests.

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5. EVALUATE alternatives and risks.


In this step you’ll identify criteria the decision must meet and evaluate alternatives against
them. You’ll also assess the risks associated with each alternative.

Identify and Rank Decision Criteria


Defining your criteria is an essential step in the process. You’ll base your final decision on which
alternative best meets the criteria. Remember to record your list of criteria so you can check the
viability of each alternative.

Decision criteria are measurable and observable characteristics the decision must meet, such as
quality, quantity, cost, and time. To identify your decision criteria, consider:
• Performance requirements or capabilities (quality, quantity, expertise).
• Physical characteristics (size, color, image/style, location).
• Resource constraints (time, cost, people).
• Problems or undesirable effects to avoid.
• Current policies or regulations.
• Any expected changes to the current situation.

It’s unusual for all criteria to be equally important. To make a high-quality decision, determine the
relative importance of each criterion. You can:
• Define each criterion as “essential” or “useful.”
• Rank each criterion on a scale of either “most important” to “least important” or from 1 to 10,
with 10 being the highest.

Categorizing or ranking criteria will help you evaluate your alternatives with greater assurance
that the most important criteria are being met.

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Evaluate Alternatives Against Criteria


Once you’ve identified and ranked your criteria, the next step is to determine how well each
alternative meets your essential criteria. The one that does this best most likely will represent
your best decision. If more than one alternative meets all essential criteria, then you’ll need to
rate each one. For less complex decisions or those having fewer criteria, try one of the following:
• Use an Impact/Effort Grid (see pages 36–37). This tool helps you examine decision options
by estimating the amount of time and cost each option will take to accomplish (i.e., the effort)
compared to the results you hope to achieve (i.e., the impact). In most cases, options with
greater impact than effort are more desirable. This tool does not include all factors used to
make decisions, such as each option’s best-case/worst-case scenarios, time to complete,
and organizational support.
• Use a Balance Sheet (see page 38). This simple, effective method contrasts and weighs
positives and negatives. To create this chart, make a “T” on a page or flip chart and label
one half “Pros” and the other “Cons.” If you have two alternatives, create a grid like the one
on page 38 to view their respective pros and cons side-by-side. Then, choose the one with
the most pros and fewest cons. This method assumes that all pros and cons are equally
important. To be more objective, assign a value/weight to each pro and con. This allows you
to weigh pros and cons and arrive at an overall score for both columns.
• Rate how effectively your alternative meets each criterion. This method is especially
useful if you used a scale of 1 to 10 to rank the importance of the criteria (as described
above). Again, using a 1-to-10 scale (with 10 being the highest), rate how effectively the
alternative meets each criterion. Multiply the importance rating by the effectiveness rating to
arrive at a score for each criterion. Add the scores for all criteria to evaluate the overall
desirability of the alternative. Repeat the process for each alternative and choose the one
with the highest score.

For more complex decisions, use a Criteria Screen (see pages 39–40). This tool creates a
visual image, enabling you to compare each alternative against your criteria. We reference this
tool, the Balance Sheet, and the Impact/Effort Grid at the end of this section.

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Assess Risks
Just as all criteria are not equally important, not all decisions carry the same risk. Use the
following process to determine the potential risk of a decision:
1. Identify what could go wrong and the magnitude of the consequences.
2. Gauge the probability of the risk actually occurring.
3. Explore ways to prevent or minimize the risk.

Based on this information, determine if the alternative is too risky to pursue.

Assessing the risk of an alternative can help you:


• Evaluate the quality of a potential decision.
• Take steps to build in ways to minimize risks.

Use the Risk and Reward tool (page 35) to gauge the levels of risk and reward of the
alternatives you are considering. You also can use it to think of ways to prevent or minimize the
risk. For each alternative, note long-term benefits, what could go wrong and the probability of this
occurring, and what could be done to prevent or minimize these risks.

Tips and Techniques


Use your “enterprise lens.” Savvy decision makers are guided by their knowledge of the
business and organization. They understand their business goals as well as the organization’s
values, practices, and culture, and they use this knowledge to guide their decisions. Focusing on
business needs is especially important when identifying decision criteria—the measurable,
observable metrics against which you will evaluate alternatives. These criteria usually relate to
quality, quantity, cost, or time.

Using your enterprise lens also enables you to view decisions in the larger context of your
functional area and organization. No decision is made in a vacuum, and looking beyond your
team or department will help you make choices that align with the organization’s values, culture,
and practices.

To provide a wider, business-related focus for your decisions, ask yourself:


• How will a particular choice or course of action affect the business? What objectives will it
support?
• Is this choice or course of action consistent with the organization’s values? Practices?
Culture? Why or why not?

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Openly discuss biases and influences. This technique is discussed in the context of
interpreting information to reach conclusions about a problem or opportunity. However, biases
also can surface when generating, evaluating, and choosing alternatives. Rather than ignore
biases, bring them out in the open where they can be discussed and understood.

Develop best-case/worse-case scenarios. It’s impossible to know the future, but it is possible
to envision what could happen if you choose an alternative by creating best-case/worst-case
scenarios.

To develop a worst-case scenario, pretend that the alternative you’re considering has been
implemented and has failed. Ask yourself:
• What does this scenario look like? What is the impact?
• What caused this to happen?
• How likely is this scenario to occur?
• What can be done to prevent, minimize, or plan for these influences or events?
• Given the likelihood of this scenario, its impact, and our ability to prevent it, is this a viable
alternative?

To construct a best-case scenario, pretend that the alternative you’re considering has been
implemented and has achieved complete success. Then, ask yourself:
• What does this scenario look like? What is the impact?
• What led to the success of this alternative or approach?
• How likely is this scenario to occur?
• Given the likelihood of this scenario, its impact, and our ability to make it happen, is this a
viable alternative?

Best-case/Worst-case is a valuable technique for identifying an alternative’s potential risks and


rewards. Weigh this information to determine whether an alternative will achieve desired results
and to assess the risks of choosing it.

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Pitfalls in This Step


• Going it alone. Failing to involve people in this step can result in missing important decision
criteria or failing to identify risks.
• Thinking subjectively. People who “evaluate” options based on their feelings or
impressions or those of others have no factual basis for their decision.

Ways to Involve Others


• For difficult decisions, ask for advice or coaching in using the decision-making tools and
techniques.
• Represent key stakeholders and interests.
• In evaluating alternatives and risks, involve your manager, experienced colleagues, or others
who understand the situation.

Use These Tools


Risk and Reward (page 35)—Use this tool to assess the level of risk of the alternatives you are
considering and to identify ways to prevent or minimize it.

Impact/Effort Grid (pages 36–37)—This tool helps you evaluate the level of effort and expected
impact, and then choose actions that will achieve maximum results through minimum effort.

Balance Sheet (page 38)—Use this tool to contrast and weigh positives and negatives.

Criteria Screen (pages 39–40)—This tool helps you evaluate and choose from among two or
more options by rating them against criteria you’ve identified as important.

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6. CHOOSE alternative.
After gathering and analyzing the information, you are in a good position to choose the
most effective alternative. Before making your choice, examine experiences or “lessons learned”
and consider your recommendation by answering questions such as:
• How effectively does the recommendation alternative address the issue?
• Will the alternative achieve the desired outcome?

Use the answers and your evaluation tools (see page 23) to choose the alternative that best
meets your desired outcomes and criteria without being too risky.

Tips and Techniques


Leverage intuition based on experience. This is another point in the process where intuition
based on knowledge and experience can help lead you to the best choice. For example:
• Use your experience with similar situations to choose the best alternative.
• Use your understanding of the organization’s practices and culture to anticipate how well a
particular option will be accepted.

As useful as intuition can be in decision making, remember that it is “real” only when born of
experience. It also can be affected by your state of mind. If you are under great pressure or are
upset or frustrated, your inner voice can be distorted or unreliable amid these strong feelings.

Identify contingencies. At this point in the process, you already should have thought through
what could go wrong if you choose a particular alternative. Now identify actions you will take if
any of these scenarios occur. The idea is not to plan for every possibility, but to focus on those
that are most likely to occur or would have a major negative impact.

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Check your decision with stakeholders, manager, colleagues. For more important decisions,
you’ve probably already involved your manager or other stakeholders in the process or have kept
them abreast of your progress. So, of course, you’ll want to inform them of your decision and,
perhaps, seek their final input. However, even in the case of more routine decisions, it usually
pays to check your thinking with your manager or a trusted colleague. It’s amazing how often
people are able to provide a perspective or advice that we didn’t consider.

Pitfalls in This Step


• Going it alone. Failing to involve stakeholders in the final decision can lead to poor
decisions or those that lack key support. Without this support, such decisions often ultimately
fail.
• Failing to act. The inability to be decisive at this point can mean missed opportunities,
unresolved problems, and wasted time spent in the process.

Ways to Involve Others


• Ask your manager and/or experienced colleagues for help or advice in making a final
decision.
• Gain commitment and support for your decision as well as the resources needed to
implement it.

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7. COMMIT to action.
Some people make decisions easily and enjoy doing so. People who dislike making
decisions often won’t take any action until they have all the information from every source and
feel 100 percent confident in their choice. The results frequently go something like this: The
problem worsens, new problems arise, the opportunity becomes obsolete, or someone else
makes the decision.

Effective decision makers recognize that there is an element of risk to any decision. However, by
following the decision-making process and committing to an action, they can tip the scales in
favor of making a good decision.

Tips and Techniques


Act with appropriate urgency. Which is more important—a timely decision or a correct one?
Often, it’s more important to be decisive than to be right. In competitive situations a good
decision made quickly can produce better results than a slightly better decision made slowly.
Occasionally, a delayed decision has a few negative consequences. You can’t be expected to
have all the answers, so use your best judgment.

To enhance your decisiveness:


• Involve as many people as possible when gathering and interpreting information or choosing
alternatives. But don’t miss the opportunity to make a timely decision. Set deadlines and
stick to them.
• Check with others on how the decision should be communicated. That way, once the
decision is made, you can act promptly and efficiently.
• Don’t delay making a decision when time is critical.
• Be aware of how easily (or not) the decision can be reversed. Effective decision makers
recognize when they’re headed down the wrong track and can turn the situation around
quickly.
• Know the risk involved versus the reward to be gained. Ask yourself, “What’s the potential
loss if the decision doesn’t work out?” Be prepared to deal with your answer.
• Be willing to say, “I have enough information to make a decision.” Then act on the data
you have.

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Communicate the business case. Why did you act on this problem or opportunity? Why did
you make this particular choice? You’ve answered these questions for yourself; however, if the
decision affects others, you’ll also need to provide answers for them. To do this:
• Describe the problem or opportunity and its impact on performance or results. (You might
already have put this in writing in step 3.) If you’re addressing a problem, ask yourself:
– What is the problem, and how is it affecting performance or results? Reduced
productivity? Wasted resources? Higher costs? Lower morale?
– What might happen if this problem gets worse?
• If you’re acting on an opportunity, ask yourself:
– What is the opportunity, and how will it affect performance or results? Increased sales?
Increased output? Lower costs? Improved teamwork?
• Communicate the decision and explain how it will resolve the problem or take advantage of
the opportunity. Share your decision criteria and explain how the alternative or course of
action you chose meets them.
Get in touch with everyone who needs to understand the decision, support it, or help carry it.
Do this by:
– Identifying who should know what by when.
– Determining the best way(s) to communicate with those who need to know.
– Communicating in ways that encourage feedback on how the decision is implemented.

Plan the implementation. Depending on the size and scope of your decision, you may need to
think through how you will implement it. A decision can get derailed when people don’t know
what they need to do, or do differently, to carry it out.

Even simpler or routine decisions require some planning to make sure they are carried out and
achieve their desired outcomes. Here are some things you can do:
• Brainstorm a list of everything that needs to be done to implement the decision.
• Plan who will carry out each action and develop a schedule for implementing the decision.
• Set checkpoints at which you’ll monitor progress.

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Pitfalls in This Step


• Failing to act. Failing to implement a decision in a timely fashion can result in missed
opportunities or problems getting worse.
• Going it alone. Failing to seek advice on communicating or implementing a decision can
lead to missteps or lack of commitment to implement the strategy.

Ways to Involve Others


• As you develop your plan, share your approach with people who have carried out similar
decisions in the past. They can offer strategies and advice on how to avoid pitfalls.
• Share the plan with people who had input into the decision but who didn’t actually make it.

Use These Tools


Decision-Making Planner (pages 29–30)—Use this tool to plan your approach to complex,
difficult decisions and to guide you through the decision-making process as you make the
decision.

Planning Your Implementation (page 41)—This tool helps you craft a plan for communicating
and implementing a decision.

Communicating with Others: Who and How? (page 42)—Use this tool to think through whom
you will share your decision with, what they will need to know, and how you will communicate with
them.

Decision Postmortem (pages 43–44)—This checklist helps you examine decisions you’ve made
to determine what you did well and not so well and to apply lessons learned to future decisions.

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Decision-Making Planner
1. IDENTIFY the problem/opportunity.

A • Watch for subtle changes and patterns


• Check internal and external sources
Whom to involve:

A 2. GATHER information.
• Gather to understand, not to confirm Whom to involve:
L • Ask, “How much is enough?”

S 3. INTERPRET information.
• Consider biases and blind spots Whom to involve:
• Leverage intuition based on experience

I • Describe the problem or opportunity

S
Write your formal problem/opportunity summary:
• State opportunity or root cause
• Describe the impact of taking no action
• Recommend course of action
• Cite information used

• Missing the Signs • Being Overconfident • Going It Alone


Pitfalls:
• Treating the Symptoms • Thinking Subjectively • Failing to Act

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Decision-Making Planner

4. GENERATE alternatives.

J •

Generate without evaluating
Use creative-thinking approaches
Whom to involve:
• Challenge the status quo

U
D
5. EVALUATE alternatives and risks.
G • Use your “enterprise lens” Whom to involve:
• Openly discuss biases and influences
• Develop best-case/worst-case scenarios
M
E
N 6. CHOOSE alternative.
• Leverage intuition based on experience Whom to involve:
• Identify contingencies
T • Check your decision with stakeholders, manager, colleagues

7. COMMIT to action.
• Act with appropriate urgency Whom to involve:
• Communicate the business case
• Plan the implementation

• Missing the Signs • Being Overconfident • Going It Alone


Pitfalls:
• Treating the Symptoms • Thinking Subjectively • Failing to Act

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Gathering Information Worksheet


Do you struggle with determining where to find information and when you have enough data to
make an educated decision? Do you collect confirming and disconfirming information? Use this
worksheet to improve your information-gathering process.

Instructions
1. Use the following table to describe an upcoming decision you will need to make.

When Decision Needs


Decision Desired Outcomes
to Be Made

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Gathering Information Worksheet (cont’d)


2. Answer the questions in the following checklist to help you identify sources of information,
check their reliability, and confirm that you have sufficient data. Check off each step when
you complete it. You’ll use your responses to complete the worksheet on page 33.
 Determine sources
• Who has knowledge or expertise in this area or has made similar decisions?
• Are there existing databases or documents that might yield information (reports,
studies)?
• Who is closest to the situation? (People most familiar with a situation probably
understand it best.)
• Who will be involved in implementing the decision?
• What information could my customers or suppliers (internal and external) provide?
• Who has a different or unusual perspective that I could tap into? Who might provide
information that disconfirms my preferences or those of the group?

 Check reliability
• Does the source have a personal stake in the decision?
• Does the source have a reasonable amount of expertise in this area?
• Is the source biased toward interpreting information in a particular way?

Note: If you answer yes to any of these questions, gather more information from a
different source.

 Confirm that I have sufficient information


• Is the information starting to repeat itself?
• Would stakeholders be confident in the amount of information I collected?
• Is it worth my time to gather more information?
• Have I collected information from all perspectives, including information that
disconfirms my preferences or those of the group?
• Do I have enough information to make the decision with confidence?

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Gathering Information Worksheet (cont’d)


3. Use the following worksheet to identify information needed to make your decision. Refer to
Step 2 to help you complete it.

What Information Who Will


Where Can I Get It? When Do I Need It?
Do I Need to Gather? Gather It?

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Interpreting Information Checklist

Instructions
Use the following questions to check that you have interpreted your information accurately and
objectively.

Yes No

1. Have you acquired information that falls only within your scope of
experience or expertise?

2. Do you understand all the information you’ve collected?

3. Are you confident that you’ve given appropriate weight to all


the information?

4. Have you collected and accepted information that might disconfirm


your opinions or preferences?

5. Have you involved people who could look at the information from
different perspectives and provide different conclusions?

6. Have you drawn conclusions about the information based on facts


or expert opinions rather than just your intuition or personal
experiences?

7. Would colleagues, leaders, other department representatives, or


customers agree with how you’ve interpreted the information?

If you answered no to any of these questions, you might be inclined to misinterpret the
information. To avoid this, ask others what conclusions they would draw from it. You might
check with:
• Internal and external customers.
• Colleagues who can approach the decision objectively.
• Your leader.
• Anyone who must implement the decision or who will be affected by it.
• Informed people with a perspective different from yours.

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Risk and Reward

Use this tool to examine the levels of risk and reward of the alternatives you are considering.
You also can use it to think of ways to prevent or minimize the risk. For each alternative, note
long-term benefits, what could go wrong and the probability of this occurring, and what could
be done to prevent or minimize these risks.

Decision Alternative #1:

What are the rewards or long-term benefits of this alternative?

What could go wrong in choosing this alternative? Probable occurrence:


 Very unlikely
 Somewhat unlikely
 Somewhat or very likely

How would you prevent or minimize the risks of choosing this alternative?

Decision Alternative #2:

What are the rewards or long-term benefits of this alternative?

What could go wrong in choosing this alternative? Probable occurrence:


 Very unlikely
 Somewhat unlikely
 Somewhat or very likely

How would you prevent or minimize the risks of choosing this alternative?

Decision Alternative #3:

What are the rewards or long-term benefits of this alternative?

What could go wrong in choosing this alternative? Probable occurrence:


 Very unlikely
 Somewhat unlikely
 Somewhat or very likely

How would you prevent or minimize the risks of choosing this alternative?

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Impact/Effort Grid
This tool helps you choose actions that will achieve maximum results through minimum effort.
Use it:
• To decide which action(s) to take from among several alternatives.
• When you’re considering actions that require varying amounts of effort or expense and that
will have varying results or impact.
• When you can take only a limited number of actions.

Instructions
1. Record your decision goal below. This is what you want to accomplish by making the
decision.
2. List the options you’re considering in the table on the next page and then assign a number
to them.
3. Discuss what impact each option would have on the decision goal. Rate each option as
follows, and then write your rating in the Impact column of the table:
H = High M = Medium L = Low

4. Discuss how much effort and expense would be needed to carry out each option. Rate each
option as follows and write your rating in the Effort column:
1 = Little 2 = Moderate 3 = Great

5. On the small grid below the table, plot each option number according to the rating you
gave it.
6. Choose the option(s) that gives the highest impact for the least effort.

Decision Goal:

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MAKING HIGH-QUALITY DECISIONS RESOURCE GUIDE

Impact/Effort Grid (cont’d)

Options Impact Effort

I
High
M

P
Medium
A

C
Low
T

1 2 3
Little Moderate Great

EFFORT

Interpreting an Impact/Effort Grid: This tool helps you examine decision options by estimating
the amount of time and cost each option will take to accomplish (i.e., the effort) compared to the
results you hope to achieve (i.e., the impact). In most cases, options with greater impact than
effort are more desirable. This tool does not include all factors used to make decisions, such as
each option’s best-case/worst-case scenarios, time to complete, and organizational support.

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MAKING HIGH-QUALITY DECISIONS RESOURCE GUIDE

Balance Sheet
This tool helps you decide between two or more options (an either/or decision) or whether to do
or not do something (a go/no-go decision).

For an either/or decision:


• Record the options you are considering. If there are more than two options, use multiple
Balance Sheet forms.
• List the rationale that supports each option on the left (the PROs) and that does not support it
on the right (the CONs).
• Weigh the pros and cons to decide which option to choose.

For a go/no-go decision, use one table (i.e., “go” rationale in the PROs column, “no-go”
rationale in the CONs column).

Option #1:

PROs CONs

Option #2:

PROs CONs

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MAKING HIGH-QUALITY DECISIONS RESOURCE GUIDE

Criteria Screen

Instructions
Is your group having trouble choosing from among options that are of the same or similar type?
This tool will help your group evaluate and choose from among these options by rating them
against criteria you’ve identified as important. The best option would then be the one that best
satisfies the criteria. To use this tool, follow these steps:
1. In the space below, record your group’s decision goal—what it wants to accomplish by
making the decision.
2. In the left columns of the tables on the next page, identify the criteria that your options must
meet and the criteria that are only useful, “nice to haves.” Involve people outside of your
group, if necessary, to help identify these criteria.
3. Record the options along the top numbered row.
4. Rate how well each option meets the criteria, using the following scale. Select the
appropriate rating:

-1 = Does not meet criteria +1 = Meets criteria +2 = More than meets criteria

5. Add the ratings to arrive at scores for both “must-be-met” and “nice-to-have” criteria.
6. Evaluate the options based on the scores.

Note: As you gather data about options, you might learn about features or constraints that you
were unaware of at first, which might cause you to make changes. Factor any new and revised
criteria into your final choice.

Decision Goal:

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MAKING HIGH-QUALITY DECISIONS RESOURCE GUIDE

Criteria Screen (cont’d)


Criteria That Must Be Met Options
1. 2. 3. 4.

Score

Useful, “Nice-to-Have” Criteria

Score

–1 = Does not meet +1 = Meets +2 = More than meets

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MAKING HIGH-QUALITY DECISIONS RESOURCE GUIDE

Planning Your Implementation

The guidelines and questions below help you develop a plan for communicating and
implementing your decision. They prompt you to identify specific actions you and others will
take, needed resources, time frames, and points at which you will check progress.

Note: Implementation planning is more effective when others are involved. If you must develop
a plan alone, have others review it before putting it into action.

Implementation Planning Guidelines


1. Brainstorm a list of everything that needs to be done to communicate and implement the
decision, including how you’ll communicate it. (Use the Communicating with Others: Who
and How? tool on the next page to think through who needs to know what and by when.)
2. Estimate time frames for each action you’ve listed.
3. Number each action to show the order in which the actions must be taken.
4. Make subcategories for each action as follows:
• Resources needed, such as people, money, equipment, supplies, or tools.
• Sub-steps—What supporting actions are needed to achieve each listed action?
• Person responsible—Who has primary responsibility for completing the action?
• By when—How much time is needed for completion? What is the deadline?
5. Identify critical checkpoints within the plan where you’ll want to check progress.

Implementation “Final Check” Questions


 Have I considered all possible people resources to help with the implementation?
 Have I planned how to communicate the decision, including any ongoing status or progress
checks and reports? (See the tool Communicating with Others: Who and How? for help.)

 Have I identified possible risks and actions to eliminate or minimize them? (See the tool Risk
and Reward on page 35 for help.)

 Have I built in enough time for each action needed to implement the decision?

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MAKING HIGH-QUALITY DECISIONS RESOURCE GUIDE

Communicating with Others: Who and How?

Use this tool to think about whom you will share your decision with, what they will need to
know, and how you will communicate with them. Consider the suggestions in the left column,
and then note specifics for your decision in the right column.

Tips and Prompts Specifics for Your Decision

Who needs to know about the decision?


 People who will implement it
 People who will be affected by it
 Senior managers and others whose
support is needed to make it work
 Current or potential customers
 Internal partners
 Suppliers
 Other stakeholders

What do they need to know?


 Original problem/opportunity
(if applicable)
 Final decision (described in appropriate
detail)
 Decision’s purpose and importance
 Desired outcomes and criteria
 Information that was gathered
 Process used to make the decision
 People involved in the final decision

How will you communicate with them?


 Face-to-face, in groups, or one-to-one
 Audio- or videoconference, in groups, or
one-to-one
 Memo, bulletin, letter, email, intranet/
Internet
 Voice mail/Broadcast message

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MAKING HIGH-QUALITY DECISIONS RESOURCE GUIDE

Decision Postmortem

These checklists help you examine decisions you’ve made to determine what went well or not
so well and to apply lessons learned to future decisions. Think through these items as soon as
possible after you’ve implemented a decision and learned the results. Respond to the
checklists to assess your decision process and results. In the right column, record what you
would do the same or differently when making a future decision. If appropriate, use the
checklists for feedback from others involved in the decision.

Check All That Apply: Note Lessons Learned:

Did the decision: Here’s what I’ll do differently or the same to


 Address a legitimate problem or plan, make, or implement future decisions:
opportunity?
 Achieve desired outcomes?
 Meet the established criteria?
 Get implemented and remain in effect
(without needing to be reversed)?
 Have the support of the people who
were involved in making it or were
affected by it?
 Avoid causing another problem or
causing unexpected negative
consequences?
In making the decision, did you:
 Accurately anticipate the process and
time frame needed?
 Clearly and accurately describe the
desired outcomes, criteria, and decision?
 Involve the right people at the right time?
 Make sure the people involved in making
the decision clearly understood the
situation?
 Take an appropriate amount of time to
reach a decision?

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MAKING HIGH-QUALITY DECISIONS RESOURCE GUIDE

Decision Postmortem (cont’d)


Check All That Apply: Note Lessons Learned:

In making the decision, did you: Here’s what I’ll do differently or the same to
 Gather enough information from credible plan, make, or implement future decisions:
sources?
 Interpret the information objectively and
accurately?
 Generate quality alternatives that met the
decision criteria?
 Evaluate alternatives against the criteria
objectively?
 Assess the risks associated with each
alternative?
 Avoid decision traps?
In implementing the decision, did you:
 Communicate it to the appropriate people
in a timely and appropriate way?
 Identify the support and resources
needed to follow through on it?
 Monitor the implementation to ensure that
the decision was being carried out and
was effective?
 Make necessary changes or corrections
to it?

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MAKING HIGH-QUALITY DECISIONS RESOURCE GUIDE

Self–Assessment

One area I could improve:


DECISION-MAKING STEPS
& PITFALLS ANALYSIS JUDGMENT

STEPS

IDENTIFY the problem/opportunity

GATHER information

INTERPRET information

GENERATE alternatives

EVALUATE alternatives and risks

CHOOSE alternative

COMMIT to action

PITFALLS

• Missing the signs

• Treating the symptoms

• Being overconfident

• Thinking subjectively

• Going it alone

• Failing to act

© Development Dimensions International, Inc., MMXI. Revised MMXII. 45


MAKING HIGH-QUALITY DECISIONS RESOURCE GUIDE

Notes

© Development Dimensions International, Inc., MMXI. Revised MMXII. 46


Notes
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